In a spot: Edible oil & oilseed slip on good rains

NIDHI SHARMA, TNNAug 28, 2007, 04.33am IST

MUMBAI: Edible oil and oilseed prices were down on Monday after reports of good rains triggered bearish sentiment for the standing soyabean crop.

Soyabean September contract on NCDEX was down 1.4% at Rs 1,510 per quintal against previous close of Rs 1,532 while refined soya oil was down 0.6% at Rs 477.25 per 10 kg against previous close of Rs 480.45. Rape mustard seed on NCDEX was down 1.2 % at Rs 426.9 per 20 kg against the previous close of Rs 431.9.

Spot market price of soyabean at Indore mandi has fallen to Rs 1,520-1,530 per quintal from Rs 1,550 while refined soya oil prices inclusive of taxes have gone down by a rupee to Rs 476-Rs 478 per 10 kg.

Soyabean Processors Association of India co-ordinator Rajesh Agrawal said rains in some soyabean growing parts of Madhya Pradesh are good for the early sown crop that that reached the podding stage.

"We expect soyabean production to touch 8.5 million tonnes this season against 8 million tonnes last year on account of increase in acreage and good rainfall," Mr Agrawal said. Soyabean acreage is expected to cross 8 million hectares in the current sowing season against 7.7 million hectares the previous year.

Meanwhile, arrival of soyabean has started at Sangli in Maharashtra while arrivals from Madhya Pradesh will start by September end.

Kotak Commodity Services' Amol Tilak from said soyabean prices are under pressure with low demand and high supplies with imports. "With anticipation of high oilseed output, the bearishness is likely to continue in medium term and soyabean could test Rs 1,475 levels for the October contract," Mr Tilak said.

He said refined soya oil for near-month could test the support of Rs 470 per 10 kg.

Edible oil imports in the nine months from November 2006 till July 2007 were 3.3 million tonnes compared with 3.1 million tonnes in the year earlier.

Rape mustard seed was also down following bearish sentiment in soyabean and refined soya oil complex. "Rape mustard seed could see Rs 422 per 20 kg in the medium term," Mr Tilak said.